The ongoing military conflict involving Iran has coincided with attacks on port infrastructure and shipping in the Persian Gulf and Arabian Gulf, resulting in multiple vessels being damaged and the disruption of vessel traffic. Iranian forces have warned against passage through the Strait of Hormuz, leading to an effective halt in transit and heightened risks for maritime operations.
We have received formal notice from our Reinsurers that war risk cover will be withdrawn under the reinsurance contract that we use to protect Insureds and the Club. This action reflects a broader market response to current developments and applies to most Insurers offering Marine Liability and P&I cover, so similar notices are being issued industry-wide.
Iran and Persian / Arabian Gulf
Following issuance of the notice and in accordance with the Charterers P&I Club 2025 Terms and Conditions, war risks cover will no longer respond to liabilities, losses, damages, costs or expenses for war risks that occur within the waters specifically mentioned below.
- Iran and Iranian waters including coastal waters up to 12 nautical miles offshore
- Persian/Arabian Gulf and adjacent waters as defined*
*Definition – Persian/Arabian Gulf and adjacent waters, including the Gulf of Oman and waters west of the line from Oman’s territorial limit off Cape al-Ḥadd at 22°42.5’N, 59°54.5’E northeast to the Iran-Pakistan border at 25°10.5’N, 61°37.5’E
The map below visualises the new exclusion zone, with everything to the west of the black line falling within the new exclusion zone which is defined above.
How does this impact war cover?
We have issued the required three days’ notice of cancellation in respect of war risks cover. Upon expiry of this period, war cover will be reinstated subject to the inclusion of a new exclusion clause, which will be added to all policies.
Prospective Cover
Please refer to the accompanying communication, which sets out the cover available for port calls through the Arabian Gulf and Persian Gulf.
What if we choose not to buy the cover?
The Charterers’ Liability Policy will remain in force for voyages through the excluded area, but there will be no cover for war or terrorism events that occur within Persian Gulf and Arabian Gulf.
In Summary
This is a fluid and rapidly evolving situation, and further updates will follow as the situation develops. The Gulf region is currently subject to heightened hostilities and materially increased risk. Future strategy and premiums for the region will be determined by events in the days and weeks ahead.
